The Companies Act No. 17 of 2015Section 492 of The Companies Act No. 17 of 2015: Distribution in kind: determination of amount
(1) This section applies for determining the amount of a distribution consisting of or including, or including or treated as arising in consequency of, the sale, transfer or other disposition by a company of a non-cash asset if—
(a) at the time of the distribution, the company has profits available for distribution; and
(b) assuming the amount of the distribution were to be determined in accordance with this section, the company could make the distribution without contravening this Part.
(2) The amount of the distribution, or the relevant part of it, is taken to be—
(a) if the amount or value of the consideration for the disposal is not less than the book value of the asset—nil; and
(b) in any other case — the amount by which the book value of the asset exceeds the amount or value of any consideration for the disposal.
(3) For the purposes of subsection (1)(a), the profits of a company available for distribution are treated as increased by the amount if any by which the amount or value of any consideration for the disposition exceeds the book value of the asset.
(4) In this section "book value", in relation to an asset, means—(a) the value stated in the relevant accounting records; or (b) if no such value is stated in those records —nil.
Check the current authoritative text and amendment history before relying on this provision.
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